HBA-JLV H.B. 2739 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2739 By: Turner, Bob Ways & Means 4/5/2001 Introduced BACKGROUND AND PURPOSE Current law provides for a property tax to be assessed on property which loses its exemption status during the year. The amount of tax assessed is based on a percentage which is prorated based on the number of days in the year that the property did not qualify for the exemption. In 1997, the legislature provided for the prorated tax to apply to residential homesteads owned by persons 65 years of age or older whose exemptions terminated during the year. The 76th Legislature removed provisions requiring taxing units to assess a prorated tax to persons who are 65 years of age or older and who lose their residential homestead tax exemptions. House Bill 2739 removes provisions regarding the calculation of such a prorated tax. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2739 amends the Tax Code to delete provisions regarding the calculation of the prorated tax levied on residential property which no longer qualifies for a homestead exemption and which was owned by persons 65 years of age or older. EFFECTIVE DATE September 1, 2001.